On 1 October 2018, the Tax Authority (General Office of Internal Revenue [DGII]) updated the new version of the “Report on Operations with Related Parties (Form F-982v4),” whose method of filing is now changed from manual filing to online filing and includes new technical requirements to be considered by taxpayers.
The main changes of this new Form with respect to the previous version-3 form:
- The taxpayer must enter for each reported transaction, the “Operations Analysis”; that is, the result of the Transfer Pricing analysis.
- This new information to be entered by the taxpayer shall include the following: the type of analysis and tested party, the type of comparable and the tested value (price, percentage or margin), the financial statements used (global or segmented) and the interquartile range determined in the comparability analysis.
- Additionally, in this same section, the taxpayer must enter the result obtained from the analysis; that is, whether the reported transaction is at market value or outside of market value range, and consequently, the monetary value in dollars of the adjustment determined by the Transfer Pricing analysis, if applicable.
Therefore, the taxpayer must have a Transfer Pricing Study and definitive results no later than March 31st of each fiscal year being reported, in order to comply with the information required for this new version of Form F-982v4.
